Work on Pabst arterial starts in spring

City of Oconomowoc - The Common Council on Tuesday committed the final $3 million of the Pabst tax incremental financing district (TIF 3) to fund the southeast arterial. Construction is anticipated to begin in March, weather permitting, said City Administrator Diane Gard. She said the project will be complete by the end of the year.

The project took a hiatus in 2011 as the city met with Kohl's corporate offices in an effort to get the retailer to consider Pabst Farms for its new corporate headquarters. Mayor Jim Daley put a hold on construction in case the city could further accommodate Kohl's needs with changes to the design of the roadway or infrastructure there. However, those discussions fizzled, as Kohl's will likely build a new headquarters in Menomonee Falls.

The road will connect Pabst Farms to Highway P, a component of the master planned Pabst Farms Town Centre that has yet to begin development in the lagging retail economy. The arterial was also originally planned to be done in conjunction with the state Department of Transportation's Highway P interchange project, which wrapped up last fall.

The DOT's interchange project included new bridges over I-94 as well as a widened Sawyer Road. The interchange's former half-diamond configuration was reconstructed into a full diamond, with four roundabouts at the interchange. In addition to relocating the Highway DR frontage road, new on- and off-ramps to the interstate and an entrance to the Pabst Farms retail development were created.

While officials claim the $12.7 million project is to handle growth in the area, including traffic to the new Summit Aurora Medical Center, it's plan to some that the plan is part of the long-awaited regional mall.

"It is advantageous to the City of Oconomowoc and expected by the Wisconsin Department of Transportation, that the city and Pabst Farms Development Inc. construct the southeast arterial, which will connect the proposed Highway P/Sawyer Road interchange to the Town Centre …" reads the dated resolution council members acted on Tuesday night.

Also on Tuesday, the council approved a $2.8 million bid from Reesman's Excavating for construction of the arterial. The city is paying for 65 percent of the estimated $4.65 million cost of the project, while Pabst pays for the remaining 35 percent. As part of an agreement between the city and Pabst, the city's portion cannot exceed the $3 million left of Pabst TIF funds. If the project does exceed the estimated cost, Pabst must pay for the rest of the project. It was stated at a council meeting in 2010 that if the city had to pay more than $3 million for the arterial, the money would have to come out of the taxpayer-supported general fund.

Pabst TIF

Regardless of the fact that the mall still has not been built, there is no concern that the TIF district won't be able to pay for itself in time. The property in the Pabst TIF was assessed at $6 million in 2001. That area has grown in value to more than $200 million from development in Pabst Farms. Gard said last fall that even with no more development, the TIF would likely be paid off ahead of its 2017 end date.

Future development

While there have been no new developments on the future mall, Pabst officials have been meeting with the city. They are pushing for a zoning change to accommodate different development than originally planned.

Discussions involve a zoning change for 17 acres at Summit Avenue and Oconomowoc Parkway from office to commercial. Dan Warren of Pabst Farms said the suburban office zoning for the parcel was established in 2000. He said that today, the market shows a surplus of office space in the region, which will diminish the chances for development of the Pabst parcel for that use.

"There is much more demand for retail, particularly in this area," Warren wrote in a Spt. 26, 2011, letter to City Planner Jason Gallo.

According to Pabst documents, a gas station is eyed for the northwest corner of the parcel if it is rezoned. However, the Plan Commission has concerns about the request, citing an existing abundance of commercial land and an adverse impact on utilities if more is developed. Other officials have disclosed concerns in other conversations.

The zoning change went to public hearing late last year; no one spoke for or against the project. The item has not yet been on a Common Council agenda for discussion or consideration. Gard said Tuesday that the rezoning is on hold for now.

"Pabst will let us know when they want it to move forward. Although I don't know for sure, I anticipate they will probably ask to move forward within a few months," Gard said.